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Final

Impact of Government detailed notes on the "impact of government" slide with examples


Department
Accounting & Financial Management
Course Code
AFM131
Professor
Robert Sproule
Study Guide
Final

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September 21, 2010
Impact of Government on Business
- Role of government (benefits, associations, impacts..)
o Promotes competition
o Government expenditure has an impact on the economy
o Protects our well beings (e.g. Regulations on food, working conditions)
o Services the government provides (assistance)
- Government really began involvement after the Great Depression (opened the door to
increased government association)
- Government built the railway that introduced cross-country trade
Should the companies or the government be responsible for inspections?
Government Stimulus Spending
- Government has spent far more money than they have spent in ten years
- Tax revenues has fallen
What does the author mean by the statement, “Those measures (infrastructure spending) will
now go into place as the economy recovers, meaning the government will find itself in
competition with (for) private sector resources?
- Gov is now in control
- Competing for limited resources, thus law of supply and demand, prices go up
- Where will they find all the resources
How will HST impact us?
Tax cascading:
o Taxes that are being added on
o Cost of the input rises and the price charged rises
Prior to HST, when PST was applied to the inputs, that became an additional cost to the
manufacturers who passed that cost on to us (consumers)
HST Change: you can claim on your taxes any HST paid if you are using it to produce something
else
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